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The Exchange of Tax Information Portal is an initiative of the Global Forum on Transparency and Exchange of Information for Tax Purposes. The Global Forum conducts peer reviews of its member jurisdictions' ability to co-operate with other tax administrations in accordance with the internationally agreed standard. The standard provides for exchange of information on request where it is foreseeably relevant to the administration and enforcement of the domestic tax laws of the requesting jurisdiction. Effective exchange of information requires that jurisdictions ensure information is available, that it can be obtained by the tax authorities and that there are mechanisms in place allowing for the exchange of that information. The Global Forum's peer review process examines both the legal and regulatory aspects of exchange (Phase 1 reviews) and the exchange of information in practice (Phase 2). The EOI Portal will track the development of these peer reviews, including changes that jurisdictions make in response to the Global Forum's recommendations.

Peer Review: Jersey Supplementary Report

This report for Jersey has been published on 4 Aug 2014. You can buy this report, or browse it online below.

Skip directly to the Executive Summary. You may also want to view the tables of determinations and ratings.


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Determinations and Recommendations

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.      
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.      
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.      
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.   The drafting of access power provisions led to too many interpretation difficulties, objections from requested parties, and ultimately delays in the EOI process. The TIEA Regulations have been amended after the period under review to improve the efficiency of the gathering of information for EOI purposes.  The Jersey authorities should closely monitor the implementation of the amended EOI Regulations to ensure that they allow for an efficient gathering of information.  
The process put in place to gather information has produced the expected results in most cases in practice. However, in cases where the information holder did not answer a notice, or has not done so diligently, the Jersey competent authority has not always pursued all alternative and readily available avenues to gather information, which led to a few delayed or unsuccessful exchanges. The Jersey competent authority started to more consistently make better use of all available sources of information in 2012.  The Jersey competent authority should continue pursuing alternative means of investigation, where information is readily available, when the first line of investigation proves unsatisfactory. Now that the powers of the competent authority have been clarified, these should be enforced where necessary to answer an EOI request, to ensure an effective exchange of information. 
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.   Jersey amended a number of provisions in the EOI Regulations (on limiting appeals to judicial reviews, and limitations on notifications coupled with anti-tipping off rules) to ensure that rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction are compatible with effective exchange of information.   The Jersey authorities should monitor the effectiveness of the new Regulations to ensure that they provide for effective EOI. . 
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.   In order to access information during the review period, Jersey had to seek clarifications in a number of cases, which delayed exchange of information. The amendments to the competent authority’s access powers to address interpretation difficulties on the reasonableness of a notice for information, together with guidance provided by case law, should allow Jersey’s competent authority to adopt a line more in keeping with the international standards. The Jersey authorities have also made significant efforts to enhance their relationship with some key EOI partners, and create good working relationships.  The Jersey authorities should continue their efforts towards limiting requests for clarifications to what is justified pursuant to the standard of foreseeable relevance. 
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Jersey should continue to develop its EOI network with all relevant partners. 
Phase 2 Rating Factors Recommendations
Compliant.      
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.   The disclosure during the period under review to third parties or taxpayers of details that are not necessary for gathering the requested information is not in accordance with the principle that information contained in an EOI request should be kept confidential. Recent amendments to the EOI Regulations should mitigate the risk of disclosure of confidential information.  Jersey should ensure that confidential information provided by requesting jurisdictions is handled suitably in all cases.  
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.      
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Compliant.   The Jersey competent authority has been in a position to answer EOI requests in a timely manner in most instances. However, the drafting of the regulations led to challenges and appeals that unduly delayed exchange of information in some instances.   Jersey is encouraged to continue reviewing its work methods, for example on checking the completeness of answers, and monitor whether further changes are required to answer all EOI requests in a timely manner.